Heterogeneous Working Qualifications - The Impact of Advanced Training as a Converter
If firms demand heterogeneous working qualifications, each has to decide whether to choose its preferred qualification and be incompatible to other firms' qualifications or to standardize and choose the same qualification as other firms. The model analyses whether advanced training, which achieves partial compatibility ex-post, can reduce the trade-off between standardization and variety of working qualifications. Advanced training can reduce incompatibility in some cases, but in other cases advanced training replaces standardization, thereby missing complete compatibility. The state can correct the incentives of the firm by influencing the costs or the "perfection" of the advanced training
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